While meeting with the Australian prime minister, Hu said that the development of Sino-Australian relations has maintained a good momentum and is showing a promising future.

Faced with a complex and changing global financial situation and soaring petroleum and grain prices, China and Australia should join hands to cope with the global challenges, Hu said.

"We'd like to work together with Australia to deepen our practical cooperation in extensive fields, steadily promote the negotiations on bilateral free trade agreement, and push forward our comprehensive cooperation based on mutual benefits," he added.

Rudd said Australia hopes to strengthen practical cooperation with China, and will unswervingly adhere to the one-China principle.